Shares of the company jumped as much as 29 percent in extended trading following the results. The app now has 187 million daily active users, up from the 178 million it reported in the third quarter-an 18% jump over the same period previous year. (One year earlier, it had added 10 million in the same quarter.) Wall Street expects Snapchat added six million new users in Q4. This increase seemed to calm investor fears that Snapchat is a mere has-been destined to get trampled by Facebook, which has copied some of Snapchat's most important features. It reported an adjusted loss of 13 cents a share, beating the consensus estimate for a 16-cent loss.
To the surprise of investors, Snap reported that both its user growth and revenue growth are accelerating.
"Our work during 2017 is proof that we aren't afraid to make big changes for the long-term success of our business", Snap Inc.
Advertising revenue rose 74 percent to $281 million, as companies advertised more in the crucial holiday quarter. If the gains hold, Snap's stock could open above its IPO price of $17 a share for the first time since July.
Snapchat closed the year with $825 million in revenue, which was double the revenue of 2016.
That re-design, separating friends from brands, was launched in late November, but has yet to roll out to all users. BTC Capital Management Inc.'s holdings in Snap were worth $1,945,000 at the end of the most recent reporting period. The latest crumb of news to come out of Snap Inc. brings word that there's a new update for its other popular app, Bitmoji, offering tons of new styles. For 2018 Snap is expected to generate $1.47 billion in net worldwide ad revenue, which is up 90% from 2017, but that's a 0.6% share of the overall worldwide digital ad market, says eMarketer, and pales in comparison to Google and Facebook.